Nestle, Pella, and Volkswagen - Km Implementation

Nestle, Pella, and Volkswagen - Km Implementation
Common Issue or Set of Issues Nestle, Pella, and Volkswagen were all in need of new Knowledge Management (KM) systems for improving efficiencies. Similarities in the needs of these companies included integration of systems, transparency across the entire company, and coordinating departments within their organizations.

Reason for Knowledge Management System Nestle wanted to centralize all the autonomous divisions and use common processes, systems and organization structures throughout its organization. They were trying to introduce economies of scale and common practices to all of its brands which were operating independent of each other. Redundancies such as the different coding and pricing of vanilla showed that there were opportunities that would benefit Nestle in becoming one highly integrated company. Pella wanted to coordinate sales, service, and manufacturing by replacing their incompatible legacy systems. Cross enterprise integration would allow visibility across the entire organization resulting in optimization and synchronism between the departments. The legacy systems were not WORKING together and were becoming more costly to maintain. Volkswagen needed to increase the speed of their decision making to become more responsive to a rapidly changing supplier environment. Driven by competition and the complexity of the consumer purchase, the need for maximum EMPLOYEE productivity, shorter cycles, and lower costs was the reason to unify Volkswagen’s supply chain.
Implementation of Knowledge Management System
Nestle started with the implementation of SAP using a set of best practices that would replace the current way of doing things. They underestimated the resistance to change in their corporate culture and pushed the SOFTWARE system onto each Nestle division. This was chaotic…...

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Common Issue or Set of Issues
Nestle, Pella, and Volkswagen were all in need of new Knowledge Management (KM) systems for improving efficiencies. Similarities in the needs of these companies included integration of systems, transparency across the entire company, and coordinating departments within their organizations.
Reason for Knowledge Management System
Nestle wanted to centralize all the autonomous divisions and use common processes, systems and organization structures throughout its organization. They were trying to introduce economies of scale and common practices to all of its brands which were operating independent of each other. Redundancies such as the different coding and pricing of vanilla showed that there were opportunities that would benefit Nestle in becoming one highly integrated company.
Pella wanted to coordinate sales, service, and manufacturing by replacing their incompatible legacy systems. Cross enterprise integration would allow visibility across the entire organization resulting in optimization and synchronism between the departments. The legacy systems were not working together and were becoming more costly to maintain.
Volkswagen needed to increase the speed of their decision making to become more responsive to a rapidly changing supplier environment. Driven by competition and the complexity of the consumer......

...programs such as the intercontinental Supply Flow Project.
The Supply Flow Project should absolutely receive funding. The cost should not come entirely from VWoA, but allocated amongst the global Volkswagen group of companies. This project is critical to Volkswagen’s global supply chain management and their goals. Successful global integration not only promises company wide savings, but plays an underlying role in customer satisfaction and loyalty, the number one corporate goal. This Supply Flow Project is already underway and needs additional funding for a timely completion. The new funding prioritization process overlooked such programs as this, primarily because the benefits achieved were at the global level. Because of the widespread benefits, all global constituents should contribute to the project’s financing. Matulovic, along with the supply flow group in Germany, should combine forces and present their case to VWAG for separate and additional funding for the Supply Flow Project.
Due to situations like the Supply Flow Project’s lacking “qualifications” to receive adequate funding, opponents claim the new system is “too theoretical” and may not be conducive to VWoA operations. True or not, this cannot be properly determined in the first year of the prioritization process implementation.
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...Sona Patel
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The new process at Volkswagen to select, manage, schedule and fund projects seems structured and effective.
The Transformation:
In the 1990s, Volkswagen had a very decentralized IT system. Initially they had outsourced all their IT work to Perot Systems and in doing so they drastically reduced the IT staff within the organization. When that didn’t work well, they created Volkswagen AG company gedasUSA Inc. which acted as the point of contact with Perot Systems. Soon, they also created eBusiness teams within each Business unit which in turn developed relationships with their own third party IT providers. This highly segmented design led to high costs and poor timeline adherences. To correct this, Volkswagen created a new business unit within the organization that would be the single point of governance for IT related issues. This unit worked in conjunction with the eBusiness teams and the gedasUSA team but was solely responsible in the management, scheduling, budgeting and execution of the IT projects. This was the first step in the right direction.
The New Process:
There are a lot of factors that govern which projects are the most ideal to be funded and the new system seemed to understand that. The three step process was very structured and first identified the dependencies between various projects. It also classified similar projects and grouped them together for execution. This immensely helped to narrow......

...Message to Stakeholders Fast Facts The Nestlé Legacy Organisation Structure The Nestlé Creating Shared Value Strategy Engaging Our Stakeholders Governance Summary of Key Performance Data Our Respect and Care for the Community Our Commitment to the Environment Our People and the Workplace Our Consumers and the Marketplace Awards & Achievements GRI Standard Disclosures
COVER:
One of Nestlé Malaysia’s key successful rural development programmes has been its contract farming initiatives, where farmers are actively engaged to be part of the Nestlé supply chain. In February 2012, the Nestlé Paddy Club was introduced with the aim of increasing field productivity and lowering production costs, whilst reducing rice-farming’s environmental footprint, as well as enhancing overall farming safety aspects at the contract farms in Kedah.
Nestlé (Malaysia) Berhad 110925-W
16
1 Our Respect and Care for the Community
46
Our People and the Workplace
20
Our Commitment to the Environment
At Nestlé, we believe that in order to create long-term value for our shareholders, we have to create value for society, subscribing to the view that corporate success and social development go hand in hand.
58
Our Consumers and the Marketplace
2
Nestlé (Malaysia) Berhad 110925-W
Message to Stakeholders
Creating Shared Value (CSV) is at the core of our business. That is how our company started off, with our founder, Henri Nestlé, a Swiss pharmacist who developed the......

...9-606-003
REV: JUNE 14, 2007
ROBERT D. AUSTIN
Volkswagen of America: Managing IT Priorities
Dr. Uwe Matulovic, chief information officer (CIO) of Volkswagen of America (VWoA), placed the telephone in its cradle and leaned back in his chair, replaying the just-completed conversation with one of his peers from the Executive Leadership Team (ELT). The call, Matulovic mused, had been similar to three others he had participated in that week, each with a different ELT member. The results of a new prioritization process—a list of IT projects that would be funded in 2004—had been unveiled only a few days earlier. But already a storm was gathering. The phone calls from other executives had common themes. All the callers had expressed concern that high priorities for their areas of the company had not been funded. Some had repeated views expressed during the prioritization process by people who worked for them about supposed categorization mistakes that penalized their business units. And each of the calls had concluded with an informal request to insert an unfunded project (or two) into the IT department’s work plans. “We don’t have to reopen the process,” the most recent caller had said, “but perhaps spare capacity might be applied to make some progress on this project in 2004—we’ve done this before, and it would mean a lot to our area and to the company’s growth plans.” The 10 business units that made up VWoA had proposed more than 40 projects, with funding requirements......

...
Chapter-1 |
Introduction |
Nestlé is a multinational food processing industry headquartered in Vevey, Switzerland. Nestlé has around 461 factories, operates in 83 countries, and employs around 330,000 people. It is the largest food company in the world measured by revenues.
Nestlé Logo
Nestlé Logo
Nestlé’s products include baby food, breakfast cereals, chocolate, coffee, culinary, dairy, drinks, confectionery, ice cream, bottled water etc. Twenty nine brands of Nestlé are available throughout the world including Nescafe, KitKat, Smarties, Nesquik, Nespresso, Maggi etc. Key information regarding the company is mentioned below:
Type Societe Anonyme
Industry Food Processing
Founded Anglo-Swiss condensed Milk Company (1866)
Farine Lactée Henri Nestlé(1867)
Nestlé and Anglo-Swiss Condensed Milk Company(1905)
Founder(s) Henri Nestlé, Charles Page, George Page
Headquarters Vevey, Switzerland
Area served Worldwide
Key People Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
Operating $11.55 billion (2012)
income
Employees 330,000
Website www.nestle.com
1.1 Nestle History
Henry Nestlé
Henry Nestlé
The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy,economical alternative to breastfeeding for mothers who could not feed theirinfants at the breast.In the mid-1860s Nestlé, a trained pharmacist began experimenting with variouscombinations......

...priorities at Volkswagen of America?
The new process for managing priorities at Volkswagen of America provides more transparency and reduces duplicity in projects compared with their old method. Volkswagen established a Project Management Office (PMO) and required business units to prepare the list of proposed projects at the beginning of the year. This was a great first step in highlighting the similarities amongst the projects prior to budgets being set and work being done. It also identified the dependencies of projects on one another and allowed some to be de-scoped for subsequent years. In turn, this reduced the estimated cost from $210 million to $170 million. In phase 2, business units prepared a more formal proposal with information such costs, benefits and how the project links to a business/enterprise goal. While not embraced entirely by some of the groups, this was a good method for aligning IT projects with business strategy. By documenting a more formal proposal, Volkswagen was able to use this detailed information to help narrow down and prioritize projects. During phase 3, executives were asked to indicate the top three projects for the year. These would most likely be applied to the majority of the budget and any other projects would have to figure out a way to get funding or place projects on hold for a year. This more organized structure of prioritizing projects is substantially better than throwing darts in the dark. This process allows Volkswagen to......

...March 24, 2015
Case Study #1
Volkswagen Group
Prepared By:
Team 2
Alejandra Alvarez
Amanda Kilroy
Ryan Musante
Bastian Steppin
The Volkswagen Group (VW), based in Wolfsburg, Germany, is one of the largest automakers in the world. Comprised of twelve different brands, the automaker maintains a global presence, with more than 100 factories across Europe, North and South America, Asia, and Africa. The company sells its cars in 153 countries. As the world’s 8th largest employer, it has 592,586 workers who produce close to 41,000 vehicles every weekday.
Volkswagen boasts many notable strengths, such as strong brand identity (in all 12 of the their brands), dedication to creating customer satisfaction, and excellence in design and engineering. The secret to their success, however, truly lies in their avid dedication to improving efficiency. As efficiency increases, production volume rises, and costs shrink. Throughout their supply chain there have been countless efforts, both large and small, to improve processes, speed up, and lower costs for virtually all tasks that are required to put vehicles into the hands of customers worldwide.
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...Nestle, Pella and Volkswagen's common issue is the lack of knowledge sharing between internal business units. They all simularily share a vision to leverage technology to integrate information and processes to be more responsive to a rapidly changing supplier environment. All three companies wanted implementation of new technology systems to streamline workflow giving employees easy access to information in order to focus on higher value tasks. These companies require a knowledge management system to simplify and automate processes where employees and suppliers capture, assess, analyze and use information to support more effective decision making.
Nestle had multiple purchasing systems and no formal processes of tracking ice cream flavors, orders or volumes. Non of the groups that were going to be directly affected by the new processes and systems were represented on the key stakeholders team. In its haste to unify the company's separate brands, the project team had essentially replaced divisional silos with process silos. Nestle focused on installing software but did not focus on changing business processes and achieving universal buy-in. Nestle learned the hard way that an enterprisewide rollout involves much more than simple installying software.
Pella wants to create visibility and achieve interplant synchronyzation to create better scheduling higher labour productivity and lower inventories. Pella's manufactuing plants operate very efficiently but as silos. ......

...How should a worldwide auto maker
regain trust after brands disaster?
A case study on Volkswagen Group
Daniel HARMAN 620019565 dh325; Jeffery YIM 620022358 jy28;
Ka Ying MAN 640042125 km499; Wing Tim MAN 650052933 wm259;
YuPeng Huang 650003422 yh379; Zhihan GUO 650058943 zg234
Outline
Emissions scandal of Volkswagen Group and its importance
Reasons for comprehending the scandal
Analysis of the case
Implications for international enterprises
Recommendation
References
Emissions scandal of Volkswagen Group
and its significance
Emissions scandal of Volkswagen Group
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●
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Pass emissions tests by cheating
Have to recall 11 million of carsestimated cost would be €6.5
billion
Share price dropped from
€162.40 on Sep 18 to €106 on
Sep 22
Volkswagen AG VOW.DE (XETRA) in Euro
Source: Reuters (2015)
Reasons for comprehending the case
Source: Volkswagen (2014) Volkswagen Sustainability 2014 At A Glance, p34
Reasons for comprehending the scandal
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United States is the second largest auto market
●
Volkswagen Group is the largest auto maker
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Many international firms face brand crisis and should know how to
renounce
Analysis of the case
Institution based view
The leading perspective in international business suggests that
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Firms’ performance is determined by the institutional frameworks to a
great extent.
Institutional transitions
●
Fundamental and comprehensive change introduced to the rules of......

...First I want to show you some car brands. Volkswagen,the best-selling car brand in Europe.Audi, the world’s third largest luxury car brand after Mercedes-Benz and BMW. Scania, the sweden commercial vehicle producer, Skoda, the famous automobil manufacturer based in the Czech Republic, and SEAT, the biggest Spain car maker. Then the ultra-high performance car brand Lamborghini ,Porsche and Bugatti. And last ,British ultra-luxury car brand Bentley.
All these brands have one thing in common, they are all owned by the Volkswagen group of Germany.
* The Volkswagen Group strengthened its position as the top motorcar manufacturer in Europe in 2009 by increasing its market share by half a percent to 21.1%.
* Volkswagen group also is the third largest car maker in world just behind Toyota and General Motors.But unlike Toyota is struggling from its brand crisis and GM struggling from bankruptcy,Vw’s performance is relatively strong during this economic crisis.
* Headquartered in Wolfsburg, Germany
* Total employee 370,000
* In 2009, Volkswagen Group sold 6.31 million vehicles, claiming over 11% of the world passenger car market
SWOT –strenths
Successful mutilple brand strategy
The Group is made up of nine brands from seven European countries: Volkswagen, Audi, SEAT, Škoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania.
Each brand has its own distinct brand identity and operates as an independent entity on the market. The......

...Volkswagen of America: Managing IT priorities
Volkswagen, as the name suggests means “people’s car” and defines its objectives to design and manufacture cars which are fuel efficient and affordable. With continuous improvement, Volkswagen has not only subjugated the automotive market with respect to its low priced cars, but also earned industry acknowledgement. The core competency of Volkswagen is structured to build customer loyalty. Although, Volkswagen suffered from erratic sales pattern when the company introduced a new model commonly called as the “Himalayas chart” due to its rise and falls (Austin, 2007).This was because of the management not dealing with situations proactively. This problem was mitigated soon through its competencies in strategizing and manufacturing potentials as well as the expansion of its product diversification, i.e. the establishment of new brands which were the “classic” and the Audi brand group so that the focus is not just on the traditional mid-sized vehicles of a particular segment. Moreover, given the high quality of cars they manufacture, good service, focussed marketing and well-organized stock rotation gives Volkswagen a competitive edge over the other automobile manufactures. The highlight of this case study is to analyse Volkswagen’s business and IT strategies and the importance of process prioritization in executing and aligning these strategies with enterprise goals.
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...Pella, Nestle & Volkswagen
Knowledge:
Knowledge is a familiarity, awareness or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning. (1) Knowledge is information that is contextual, relevant and actionable. Knowledge is very distinct from data and information and provides a higher level of meaning about that data and information. Data are the collection of facts, measurements and statistics. Information is organized or processed data that are timely and accurate.
Enterprise-wide knowledge management systems are general-purpose firm-wide efforts to collect, store, distribute and apply digital content and knowledge. Such systems provide databases and tools for organizing and storing structured and unstructured documents and other knowledge objects, directories and tools for locating employees with expertise in a particular area and increasingly, web-based tools for collaboration and communication.
Common Issue or Set of Issues
Nestle, Pella, and Volkswagen were all in need of new Knowledge Management (KM) systems for improving efficiencies. Similarities in the needs of these companies included integration of systems, transparency across the entire company, and coordinating departments within their organizations.
All three wanted to have one set of common processes throughout their entire organizations, with the belief that all employees,......

...The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. In 2011, the Group increased the number of vehicles delivered to customers to 8.265 million (2010: 7.203 million), corresponding to a 12.3 percent share of the world passenger car market.
In Western Europe over one in five new cars (23.0 percent) comes from the Volkswagen Group. Group sales revenue in 2011 totalled €159 billion (2010: €126.9 billion). Profit after tax in the 2011 financial year amounted to €15.8 billion (2010: €7.2 billion).
The Group is made up of ten brands* from seven European countries: Volkswagen, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Volkswagen Commercial Vehicles, Scania and MAN.
Each brand has its own character and operates as an independent entity on the market. The product spectrum extends from low-consumption small cars to luxury class vehicles. In the commercial vehicle sector, the product offering ranges from pick-ups to buses and heavy trucks.
The Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel engines for marine and stationary applications (turnkey power plants), turbochargers, turbo-machinery (steam and gas turbines), compressors and chemical reactors, and also producing vehicle transmissions, special gear units for wind turbines, slide bearings and couplings as well as testing systems for the mobility sector.
The Group operates......